Stitch Fix, Inc. [NASDAQ:SFIX]: Analyst Rating and Earnings

Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Stitch Fix, Inc. [SFIX] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in July. On average, stock market experts give SFIX an Hold rating. Its stock price has been found in the range of 16.05 to 52.44. This is compared to its latest closing price of $23.29.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Stitch Fix, Inc. [SFIX] is sitting at 2.73. This is compared to 1 month ago, when its average rating was 2.73.

For the quarter ending in Jan-19 Stitch Fix, Inc. [SFIX] generated $0.37 billion in sales. That’s 1.48% higher than the average estimate of $0.36 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.

Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 5 Jun (In 19 Days).

Fundamental Analysis of Stitch Fix, Inc. [SFIX]

Now let’s turn to look at profitability: with a current Operating Margin for Stitch Fix, Inc. [SFIX] sitting at +3.51 and its Gross Margin at +42.84, this company’s Net Margin is now 3.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 20.53, and its Return on Invested Capital has reached 11.90%. Its Return on Equity is 17.32, and its Return on Assets is 9.83. These metrics all suggest that Stitch Fix, Inc. is doing well at using the money it earns to generate returns.

What about valuation? This company’s Enterprise Value to EBITDA is 41.74. The Enterprise Value to Sales for this firm is now 1.63. Stitch Fix, Inc. [SFIX] has a Price to Book Ratio of 9.25, a Price to Cash Flow Ratio of 33.23 and P/E Ratio of 46.93. These metrics suggest that this publicly-traded organization will not likely result in investment gains.

Shifting the focus to workforce efficiency, Stitch Fix, Inc. [SFIX] earns $185,834 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 3.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.33 and its Current Ratio is 2.93. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Stitch Fix, Inc. [SFIX] has 103.84M shares outstanding, amounting to a total market cap of $2.42B. Its stock price has been found in the range of 16.05 to 52.44. At its current price, it has moved by -56.28% from its 52-week high, and it has moved 42.87% from its 52-week low.

This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 31.58. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Stitch Fix, Inc. [SFIX] a Reliable Buy?

Shares of Stitch Fix, Inc. [SFIX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.